Two Ways to Play: Credit Suisse Upgrades Research In Motion

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CS upgrades RIMM

Credit Suisse added Research In Motion (RIMM) to its US focus list this morning. The firm placed an Outperform rating on RIMM on the basis that it has a multi-year growth opportunity and under-appreciated volume and market share potential in the smartphone market.

Credit Suisse acknowledges that the highly rumored move of Apple (AAPL) also distributing its iPhone through Verizon (VZ) could negatively impact RIMM. But the fears are likely overdone as any move wouldn't happen until at least mid-2011.

Long-term, Credit Suisse believes RIMM could benefit from the growth of the smartphone market (+27% and +26% year-over-year in 2010/2011, respectively) and that its 21% global share is sustainable. The firm placed a 12-month $95 target rating representing a 40% upside from the current price.

From the Bull Pen: RIMM is currently trading higher in the face of down futures, a sign of demand. Those bullish can set a 2% sell stop from entry or below yesterday's low, depending on your risk profile.

From the Bear Cave: Keep an eye on Apple. Failure at its 50-DMA ($203) could mark a lower high, and its downward sloping 20-DMA could be setting up a "death cross". But even if you don't like shorting, it does help to recognize the potential weakness.

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